Alaska Air Group (NYSE:ALK) Shares Gap Down Following Weak Earnings

Alaska Air Group, Inc. (NYSE:ALK)’s share price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $43.54, but opened at $42.00. Alaska Air Group shares last traded at $43.1740, with a volume of 1,166,752 shares trading hands.

The transportation company reported ($1.68) earnings per share for the quarter, missing the consensus estimate of ($1.61) by ($0.07). The firm had revenue of $3.30 billion for the quarter, compared to analysts’ expectations of $3.31 billion. Alaska Air Group had a net margin of 0.51% and a return on equity of 4.86%. Alaska Air Group’s revenue for the quarter was up 5.2% compared to the same quarter last year. During the same period last year, the firm earned ($0.77) earnings per share. Alaska Air Group has set its Q2 2026 guidance at -1.000–1.000 EPS.

Trending Headlines about Alaska Air Group

Here are the key news stories impacting Alaska Air Group this week:

• Positive Sentiment: Management says underlying travel demand remains strong and the company led the industry in on‑time performance, supporting revenue growth and premium revenue expansion. Alaska Air points to strong underlying demand
• Positive Sentiment: Alaska extended its multi‑year co‑branded credit card partnership with Bank of America, which should help Atmos Rewards revenue and customer economics over time. Alaska Air Group and Bank of America Expand Partnership
• Positive Sentiment: Wall Street consensus remains bullish — coverage is overwhelmingly Buy/Strong Buy across analysts, leaving upside potential if margins normalize and fuel eases. Every Wall Street Analyst Says Buy Alaska Air
• Neutral Sentiment: Full Q1 earnings call transcript is available for detail on operations and margin drivers; slides provide line‑item context on revenue, costs and fleet updates. Q1 2026 Earnings Call Transcript Q1 Results Presentation
• Negative Sentiment: CEO Ben Minicucci said rising jet‑fuel costs tied to geopolitical events will hit Q2 profitability by about $600M — a clear near‑term margin headwind. Alaska Air CEO on jet fuel prices: $600M impact in Q2
• Negative Sentiment: Management suspended full‑year guidance and pulled the prior profit forecast until fuel-cost outlook stabilizes — increases uncertainty and downgrades near‑term earnings visibility. Alaska Air Group Suspends Guidance
• Negative Sentiment: Q2 EPS guidance was updated to about -$1.00 (versus a consensus near -$0.06), and Q1 EPS missed estimates (reported -$1.68 vs. consensus -$1.61), driven by sharply higher cost of sales — key reasons for the stock weakness. Q1 results summary
• Negative Sentiment: Quarterly operating costs jumped materially (fuel and other cost pressures), cash balances declined versus year‑ago and the company reported an operating loss — all increase near‑term risk to earnings. Q1 financials and cost trends

Analysts Set New Price Targets

Several research firms have recently weighed in on ALK. Barclays reaffirmed an “overweight” rating and set a $70.00 target price (up from $60.00) on shares of Alaska Air Group in a report on Monday, January 12th. The Goldman Sachs Group cut their target price on shares of Alaska Air Group from $68.00 to $61.00 and set a “buy” rating for the company in a report on Wednesday, April 1st. Susquehanna lifted their price target on shares of Alaska Air Group from $52.00 to $70.00 and gave the company a “positive” rating in a research note on Friday, January 9th. UBS Group reissued a “buy” rating and issued a $54.00 price target (up from $53.00) on shares of Alaska Air Group in a research note on Wednesday, April 15th. Finally, TD Cowen dropped their price target on shares of Alaska Air Group from $63.00 to $54.00 and set a “buy” rating on the stock in a research note on Monday, March 9th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $63.33.

Insider Activity at Alaska Air Group

In other Alaska Air Group news, EVP Kyle B. Levine sold 2,945 shares of the firm’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $60.02, for a total value of $176,758.90. Following the transaction, the executive vice president owned 20,977 shares in the company, valued at approximately $1,259,039.54. This trade represents a 12.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Shane R. Tackett sold 24,000 shares of the firm’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $57.15, for a total value of $1,371,600.00. Following the completion of the transaction, the chief financial officer owned 43,377 shares in the company, valued at $2,478,995.55. The trade was a 35.62% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 56,945 shares of company stock valued at $3,204,569. 1.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ALK. Brighton Jones LLC lifted its holdings in Alaska Air Group by 2,046.4% in the 4th quarter. Brighton Jones LLC now owns 96,932 shares of the transportation company’s stock valued at $6,276,000 after purchasing an additional 92,416 shares in the last quarter. Empowered Funds LLC increased its stake in shares of Alaska Air Group by 60.2% in the 1st quarter. Empowered Funds LLC now owns 6,423 shares of the transportation company’s stock worth $316,000 after acquiring an additional 2,414 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Alaska Air Group by 81.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 340,258 shares of the transportation company’s stock worth $16,747,000 after acquiring an additional 152,953 shares during the last quarter. Intech Investment Management LLC acquired a new stake in shares of Alaska Air Group in the 1st quarter worth $1,318,000. Finally, Invesco Ltd. increased its stake in shares of Alaska Air Group by 2.7% in the 2nd quarter. Invesco Ltd. now owns 357,520 shares of the transportation company’s stock worth $17,690,000 after acquiring an additional 9,307 shares during the last quarter. Hedge funds and other institutional investors own 81.90% of the company’s stock.

Alaska Air Group Stock Down 4.6%

The firm has a market capitalization of $4.70 billion, a price-to-earnings ratio of 78.33, a P/E/G ratio of 6.33 and a beta of 1.27. The business has a 50 day simple moving average of $43.99 and a 200-day simple moving average of $46.51. The company has a debt-to-equity ratio of 1.17, a quick ratio of 0.46 and a current ratio of 0.50.

Alaska Air Group Company Profile

Alaska Air Group is a publicly traded holding company headquartered in Seattle, Washington, that operates two main airlines—Alaska Airlines and Horizon Air. Through these carriers, the company offers scheduled passenger and cargo services across a network spanning the United States, Canada and Mexico. Its core business activities include domestic and international air transportation, loyalty program management under the Mileage Plan brand, and ancillary revenue streams such as baggage fees, in-flight sales and code-share partnerships with other global airlines.

The roots of Alaska Air Group trace back to the foundation of its flagship carrier, Alaska Airlines, in 1932.